Corporate Finance #1 Introduction & Financial Statements

Explore how financial statements underpin company valuation, linking balance sheet, income statement, retained earnings, and cash flows to assess current value and future earnings.

Describe the balance sheet objectives, components (assets, liabilities, and equity), and the accounting equation as of a point in time, with current assets and property, plant, and equipment.

Explore the balance sheet's point-in-time view of assets, liabilities, and equity, and how it ties to the income statement, retained earnings, and cash flows.

Explain the income statement's purpose and timing, identify revenue and expense components, and show how for the month ended frame yields net income.

Explore how the income statement measures performance, linking gross profit, operating income, and net income to the balance sheet, retained earnings, and cash flows, with accrual versus cash basis.

Explore the statement of retained earnings, linking last year’s balance sheet to this year’s income statement through beginning retained earnings, net income, and dividends to derive ending retained earnings.

Explore the statement of cash flows, its link to the balance sheet and income statement, and the indirect method's operating, investing, and financing sections.

Explore earnings per share and gross profit through a one note practice problem, compare 20x1 and 20x2 data, and apply ratio analysis within a corporate finance context.

Calculate operating income from revenue minus cost of goods sold, selling and admin expenses, and depreciation within the accrual-based income statement.

This lecture guides you through organizing income statement accounts in the standard order, explaining revenue, gross profit, operating profit, taxes, net income, and earnings per share.

Learn the structure of a multi-step income statement, from revenue to net income, including cost of goods sold, depreciation, operating profit, interest, and taxes, with accrual considerations and ratio analysis.

Construct an income statement from revenues through net income, highlighting gross profit and operating profit, then compute earnings per share after deducting preferred dividends and dividing by outstanding common shares.

Examine balance sheet classifications by current and noncurrent items, mapping assets, liabilities, and equity to examples like accounts receivable, accounts payable, inventory, plant and equipment, and stock components.

Classify balance sheet and income statement accounts, differentiate current and fixed assets, current and long-term liabilities, and stockholders equity to build a decision-ready financial picture.

Explore balance sheet formats, including side-by-side and vertical layouts, and learn to classify assets, liabilities, and equity using current assets, long-term assets, and key accounts.

Work through a practice problem to calculate net income from beginning and ending retained earnings, account for common dividends, and derive earnings per share.

Explore the cash flow statement based on account activity, contrasting accrual and cash bases, and using the indirect method to link balance sheet changes to operating, investing, and financing activities.

Analyze how depreciation affects accrual and cash flow statements using a practice problem, compare indirect and direct methods, and understand tax impacts on cash flow reconciliation.

Compute free cash flow by subtracting capital expenditures and dividends (common and preferred) from the estimated cash flow from operations.

Calculate book value per share from a balance sheet: assets minus liabilities equals equity, subtract preferred stock, then divide by 25,000 common shares to reach 5.76.

Learn to compute book value per share, earnings per share, and the price-to-earnings ratio from a balance sheet and earnings data, then compare market value to book value.

analyze the accounting equation and equity to compute book value per share, then evaluate earnings per share, price-to-earnings ratio, and market value per share against book value.

Learn to construct a statement of cash flows from a two-year balance sheet and income statement using the indirect method, with an Excel worksheet and cash flow reconciliations.

Practice calculating earnings per share and gross profit in Excel using real data, with formulas, shares outstanding, sales, cost of goods sold, and percent formatting.

Practice calculating operating income in Excel by constructing a multi-step income statement from revenue, cost of goods sold, gross profit, selling and admin expenses, and depreciation.

This excel practice teaches income statement account order from revenue to net income, covering cost of goods sold, gross profit, operating profit, depreciation, taxes, and earnings per share concepts.

Practice constructing and formatting a multi-step income statement in Excel, tracing revenue, cost of goods sold, gross profit, selling and admin expenses, depreciation, interest, and taxes to net income.

Learn to build a multi-step income statement in Excel, calculate earnings per share, and practice with revenue, cost of goods sold, gross profit, operating profit, and taxes.

Practice solving income statements in Excel, including unknown depreciation, tax and interest calculations, using Goal Seek and three tabs to back into expenses and compute operating profit and net income.

Classify balance sheet items into current and noncurrent assets, liabilities, and equity, using examples like accounts payable, inventory, accounts receivable, property, plant and equipment, and marketable securities.

Explore how to classify balance sheet and income statement accounts in Excel, labeling assets, liabilities, and equity, and mapping items like accounts receivable, cash, inventory, notes payable, and net income.

Practice balance sheet formats in Excel, organizing assets, liabilities, and equity with current and long-term categories, including accounts like cash, accounts receivable, and notes payable.

this excel practice shows calculating the increase in retained earnings and earnings per share from net income after taxes minus preferred dividends for common stockholders.

Solve for net income from retained earnings in excel using algebra or goal seek, then compute earnings per share from net income and 48,000 shares outstanding.

Practice calculating retained earnings and earnings per share in Excel, then compute price to earnings ratio, compare year over year stock price and EPS, and analyze market versus financial statements.

Learn to convert net income to cash flow using indirect and direct methods, focusing on accounts receivable, accounts payable, accrual adjustments, and the income and cash flow statements.

Apply Excel to compare depreciation effects on income and cash flow statements, highlighting accrual vs cash-basis treatment and the indirect method for operating cash flow.

Compute free cash flow from estimated cash flows from operations, subtract capital expenditures and dividends (common and preferred) in Excel, using either direct subtraction or the sum function.

Compute the book value per share from the balance sheet by applying assets minus liabilities to derive equity, adjust for preferred stock, and divide by common shares in Excel.

Work through a balance sheet in Excel to compute book value per share and earnings per share, back into the price-earnings ratio, and compare market value to book value.

Demonstrate solving an Excel problem to calculate book value per share, earnings per share, and price-earnings ratio, then derive market value per share and compare to book value per share.

Learn how to construct income statements, retained earnings, and balance sheets in Excel, converting accrual to cash flow, and link them with notes, depreciation, and equity.

Learn to build a cash flow statement in Excel by converting accrual data with the indirect method, showing cash flows from operations, investing, and financing.